In 2013, Chinese domestic M&As were going well, most noticably in the Internet sector. The three giants of the Chinese Internet: Baidu, Alibaba and Tencent, were staking their ground. As the boundaries between them blurred, their overall impact on the domestic internet sector grew. We present the characteristics of the three giants via an analysis and comparison of their business structures and investment practices. We also compare their actions with those of their US counterparts, Google, Amazon, and Facebook, to uncover the root causes of differences between the two internet sectors.
US treasury bonds are one of the most important financial products in the world. They are used to price many other financial products and play a vital role in how the financial markets operate. The US treasury bond market is very active, with many participants and a high trading volume, which makes it a popular investment target. How did US treasury bond gain such a high status? Compare it with China’s national debt issuance: the market is small, trading is hardly active, and bonds have never played a big role in the market. Why have Chinese government bonds had such trouble? This case explores the similarities and differences between the two countries’ national debt market systems, to encourage new ways of thinking about the issue.
Shanghai’s Adream Foundation has made significant innovations in the field of public welfare: launching a financial reporting system just like that of any listed companies, strengthening brand transparency, reducing costs and improving operational efficiency through standardized processes and a well-developed knowledge network. Adream aims to transform the provision of education, creating a resource integration platform on which the government, schools, teachers, and donors will be treated as partners in a quest to promote and create quality educational products. How did this innovation come about?
In 2015, the US stock exchanges saw a delisting wave among China Concept Stocks. More than 30 Chinese companies received privatization offers, exceeding the total between 2010 and 2014. Only a few short years ago, it was every Chinese entrepreneur’s dream to go public in the US. Now, more and more listed Chinese companies have turned around and sought access to China’s A share market. What has changed? What risks have companies faced in the process of privatization? As the largest such privatization in 2015, Qihoo 360 is an example of how it plays out in practice.
In the era of CEO Jack Welch, GE made a series of brilliant moves in financial services. After he stepped down, GE faced an all new economic environment under Jeffrey Immelt, and was buffetted by changes to financial markets and regulatory policies. The impact of the financial crisis led to plummeting business for GE Capital, and resulted in its “manufacturing and finance integration” model being subjected to increasing doubt and challenges. Immelt took the decision to divest the company of many of its financial services. This case takes a macroeconomic look at the rise and fall of GE’s financial services business, given changing supervisory conditions.
An established and respected Chinese home appliance brand, Haier goods are used in nearly 200 million Chinese households. How can user data the company holds be collected, integrated and applied? This case will analyze how Haier, a manufacturing giant, carries out strategic and organizational innovation, and implements interactive marketing campaigns based on big data.
Raising capital has always been difficult for small and micro-enterprises in China, but with the development of Internet technology, innovative solutions have been found. E-commerce giant Alibaba Group established two small loan companies in 2010 and 2011 to provide credit to small and micro-enterprises and individual sellers in its ecosystem. In June 2014, Ant Financial Services was established as part of a reorganization and extension of Alibaba's financial business, and the microloan business was renamed “Ant Micro Loan”. This then merged with MYBank, continuing to serve self-employed and small-scale businesses with “online business loans.” This case study explores how Ant Micro Loan developed a credit model based on online transactions. It looks at the options they face in expanding their financing channels and funding sources. Moreover, it considers the social value of digital inclusive financing.
After entering the WTO in 2000, China’s opportunities for cross-border exchange and cooperation have gradually increased, and more and more companies have gone global. In recent years, Chinese firms have begun to face pressures to upgrade and transform their business practices, putting pressure on RMB demand. Cross-border M&A is growing no matter whether you consider the number of transactions or the total funding. The first part of this study sifts through cross-border M&A over the past ten years from a macro perspective. The second part summarizes key factors of cross-border M&A integration success from a micro perspective by way of case studies.
As the largest menswear producer in China, HLA has a unique operating model. It uses the credit sales model to obtain products from suppliers and sells them through franchisees. This model has enabled HLA to achieve rapid expansion in a short period of time. This case describes and explores the company’s successful business model.